AGENDA #5d

MEMORANDUM

TO:                  Mayor and Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:       Status Report on Stormwater Utility Pro Forma Business Plan Development

DATE:             May 29, 2002

The purpose of this report is to recommend that the Council receive a report at the budget work session on June 12 on development of a business plan for implementation of a utility-based Stormwater Management Program in Chapel Hill.

BACKGROUND

On November 26, 2001 the Council received the final report of the Stormwater Utility Development and Implementation Study Committee.  In its report, the Committee advised the Council that it did not have the necessary expertise to develop a thorough proposal for a Stormwater Utility to serve Chapel Hill.  The Committee recommended that the Council authorize the Manager to obtain the services of an experienced consultant to develop the details of a Town Stormwater Utility including: financing structure, billing, programs and legal issues.

We concurred with the Committee’s recommendation concerning establishment of a Stormwater Utility and recommended that the Council authorize us to engage in a contract with an experienced consultant to prepare a business plan for the development and of a utility-based Stormwater Management Program to serve Chapel Hill.  The cost for these consultant services was not to exceed $15,000.

Town staff subsequently solicited and evaluated proposals from consultants, and in April 2002 the Town contracted with AMEC Earth and Environmental, Inc. for preparation of a business plan report.

DISCUSSION AND CONCLUSION

Staff from the Town Engineering, Finance, Planning and Public Works departments have met with AMEC project managers and have provided information and materials to assist AMEC in its analysis. AMEC now is ready to present a draft to Town Council for preliminary discussion depending on. questions and comments of the Council.  We believe a final report could be submitted to the Council for consideration as early as June 24, 2002.

Provided the Council consents, we expect the consultant present the draft business plan for discussion by the Council at the June 12 budget work session.